Global Sourcing & Purchasing Post 9/11: New Logistics Compliance Requirements and Best Practices

When a supply chain management team researches the pros and cons of purchasing domestically versus globally, the options and saving factors typically favor procuring some products globally. Let us assume this is the chosen path for the product you desire to market and distribute throughout the U.S. You have identified your internal key departments as well as external entities that will work with you to move further into transporting product from your selected foreign suppliers. Transportation procurement by domestic means involves trucks, railways, and airlines. Global procurement expands transportation to involve ocean shipping as well as new payment methods, exchange rate considerations, and document preparation. Additional controlling factors must be considered to ensure the most reliable transportation formula to meet your needs. New strategic arrangements, as a best practice, can be developed every day from growing partnerships with brokers, forwarders, and truckers. Companies do not have to venture into the global arena alone. A partnership can be formed, giving you the advantages of discounts and options on logistics, clearance, record keeping, and automation. This is essential for companies that are developing new activities, products, and sources. We begin by understanding how the selection of the right "partner" (carriers and forwarders) can have a direct impact to your bottom line.
When a company's internal logistics, transportation, and supply chain management services are combined and made to work together, the results can be remarkable. When expanded to involve external transportation or logistic...